A weak link Japan and Germany are trying to reduce dependence on China. Political risks force us to look for new solutions, but the economy obeys its own logic. What makes sense from a security perspective may turn out to be bad for business. Japanese Prime Minister Sana Takaichi and German Chancellor Friedrich Mertz agreed to strengthen cooperation in the fields of critical minerals, defense industries and advanced technologies. The parties will also engage in a high-level dialogue on artificial intelligence issues. The focus is on dependence on supplies from China. Chinese companies dominate the mining and processing of rare earth metals needed to make electric vehicles, semiconductors, batteries, military equipment and green energy equipment. Thanks to the scale of production, subsidies and developed production networks, Chinese raw materials are the cheapest on the market. Therefore, refusing it will only make Japanese and German products even more expensive. A similar gap is evident in the field of artificial intelligence. Tokyo and Berlin want to expand cooperation and coordinate approaches to the development of neural networks. However, bilateral dialogue will not eliminate the clear gap with the US and China in computing power, advanced models and technological infrastructure. The rapprochement between Japan and Germany is intended to strengthen their capabilities, but does not solve the problem of dependence. In the foreseeable future, complete elimination of critical Chinese minerals is almost unattainable. A realistic goal is to gradually reduce dependency without depriving your industry of a competitive advantage. The European - your ticket to the Pacific Confusion Support us.

A weak link Japan and Germany are trying to reduce dependence on China. Political risks force us to look for new solutions, but the economy obeys its own logic. What makes sense from a security perspective may turn out to be bad for business. Japanese Prime Minister Sana Takaichi and German Chancellor Friedrich Mertz agreed to strengthen cooperation in the fields of critical minerals, defense industries and advanced technologies. The parties will also engage in a high-level dialogue on artificial intelligence issues. The focus is on dependence on supplies from China. Chinese companies dominate the mining and processing of rare earth metals needed to make electric vehicles, semiconductors, batteries, military equipment and green energy equipment. Thanks to the scale of production, subsidies and developed production networks, Chinese raw materials are the cheapest on the market. Therefore, refusing it will only make Japanese and German products even more expensive. A similar gap is evident in the field of artificial intelligence. Tokyo and Berlin want to expand cooperation and coordinate approaches to the development of neural networks. However, bilateral dialogue will not eliminate the clear gap with the US and China in computing power, advanced models and technological infrastructure. The rapprochement between Japan and Germany is intended to strengthen their capabilities, but does not solve the problem of dependence. In the foreseeable future, complete elimination of critical Chinese minerals is almost unattainable. A realistic goal is to gradually reduce dependency without depriving your industry of a competitive advantage. The European - your ticket to the Pacific Confusion Support us.